UOA Development 2Q profit rises 4.2% as revenue jumps 70%

PETALING JAYA (Aug 26): UOA Development Bhd’s net profit attributable to shareholders rose 4.2% year on year to RM95.59 million for the second quarter ended June 30, 2026 (2QFY2026), supported by sharply higher revenue from the progressive recognition of its ongoing property developments.

Revenue surged 69.9% to RM221.20 million from RM130.16 million in the corresponding quarter a year earlier. Profit before tax increased 20.7% to RM131.51 million from RM108.99 million, while earnings per share edged up to 3.60 sen from 3.50 sen.

In its quarterly report lodged with Bursa Malaysia on Wednesday (Aug 26), the group said revenue was mainly derived from progressive recognition of Bamboo Hills Residences, Aster Hill and Duo Tower.

An accompanying media release also named Aethera Residences as a contributor to quarterly revenue and earnings.

Against the immediately preceding quarter, UOA Development’s revenue almost doubled from RM113.86 million, while profit before tax jumped 145.9% from RM53.49 million. The group attributed the stronger sequential performance mainly to higher progressive recognition from Aster Hill and sales from the newly launched Aethera Residences.

First-half earnings decline

For the first half ended June 30, 2026 (1HFY2026), net profit attributable to shareholders fell 17% to RM137.53 million from RM165.66 million a year earlier, even as revenue grew 18.7% to RM335.06 million from RM282.27 million.

First-half profit before tax declined 8.8% to RM185 million from RM202.91 million, while earnings per share fell to 5.18 sen from 6.31 sen.

Gross profit declined 7.1% to RM117.06 million from RM125.94 million. The group also recorded a negative RM12.33 million fair value adjustment on investment properties, compared with none in the preceding-year period.

Administrative and general expenses increased to RM103.18 million from RM99.59 million, while other expenses rose to RM45.55 million from RM43.66 million. The group also booked RM5.17 million in inventory write-downs, compared with RM5.28 million a year earlier.

RM316.7m sales; RM576.6m unbilled

UOA Development said new property sales totalled RM316.7 million in the first half, mainly generated by Aethera Residences, Aster Hill, Bamboo Hills Residences and Duo Tower.

Unbilled sales stood at RM576.6 million as at June 30 and are expected to be recognised progressively in line with construction progress. The group said it would continue to explore strategic opportunities for future growth and expansion.

Cash-rich and debt-free

UOA Development had no borrowings or debt securities as at the date of the report.

Cash and cash equivalents stood at RM1.73 billion at end-June, down from RM1.91 billion a year earlier. This comprised RM1.30 billion in short-term investments, RM214.31 million in fixed deposits and RM210.48 million in cash and bank balances, less RM180,000 in pledged fixed deposits.

Net cash generated from operating activities fell to RM46.83 million in 1HFY2026 from RM134.16 million a year earlier. Cash generated from operations declined to RM93.27 million from RM160.90 million, while net tax paid increased to RM48.19 million from RM29.81 million.

The board did not recommend a dividend for the quarter. UOA Development’s shareholders had approved a first and final single-tier dividend of 10 sen per share for FY2025 at its annual general meeting on May 26. The dividend was paid on July 27.

RM165.7m tax dispute

Separately, wholly owned subsidiary Distinctive Acres Sdn Bhd is disputing RM165.66 million in additional income tax assessments issued by the Inland Revenue Board over the 2020 disposal of UOA Corporate Tower in Bangsar South to UOA Real Estate Investment Trust.

The dispute concerns the tax treatment of the gain from the disposal, which the tax authority treated as subject to corporate income tax rather than real property gains tax.

UOA Development said that, based on advice from its tax consultant, it has a strong basis to challenge the treatment and validity of the additional tax assessment. Distinctive Acres filed an appeal on Nov 7, 2025.

The directors are of the opinion that no provision for the disputed tax liability is required in the financial statements as at the reporting date.

Net assets per share stood at RM2.18 as at June 30, compared with RM2.25 at end-2025, while total equity stood at RM6.01 billion versus RM6.14 billion.

Investment properties increased to RM2.40 billion from RM2.31 billion at end-2025. The group spent RM92.85 million on additions to investment properties during the first half.

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